Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: jttmab who wrote (8275)	10/15/1998 7:24:00 PM
From: Mike Sesan	Respond to of 16960

Conference Call #: 800-633-8284 #1596411 Mike

To: jttmab who wrote (8275)	10/15/1998 7:50:00 PM
From: Simon Cardinale	Read Replies (3) \| Respond to of 16960

My CC notes, without comment: sega nec vdo - $13M Banshee contributed more than they expected met all Banshee promises turned down 150k sales as overkill checked with dimd who said sell-thru was fine sell-thru has increased, but too late most customers bought projected amount dimd bought 10% of projections which were confirmed as late as July anecdotal : 4x increase since drop in price for V2 expect Banshee to exceed their initial expectations will announce significant OEMs in the next few weeks Babbages? EB? - 3dfx t-shirts weekends during xmas 1998 is opening act to big show of 1999 OEM response leads them to believe volume sales in 1Q99 will be strong 3Dfx's prospects today are best they've ever been V2 - 2/3 revenue Banshee almost 30% V1 - remainder 4 biggest: creaf largest customer , tiawan > 10% , guillmot, and dimd (Banshee) larger fail rate than expected Banshee slightly lower margin than V2 Questions: inventory reserve $4M V1.5 was V2 on 2 chips w/ same die (1 TMU?), was in die form. may be used if volume picks up, would need to acquire additional chip under 500,000 V2s could result, after 3rd chip ordered, cycle time less than 13 weeks. competitors - ati, s3, nvidia, ourselves positioned to be a leader, if not the leader ad budget big for the industry, reduced somewhat for 4Q, branding important in 4Q 3Q V2 > $40/chip, in 4Q $35-$40, Banshee ~$30ish range Inventory of V2 depleted by end of 1Q, maybe by end of Dec increase in R&D - new research center in houston, new design tools stakes enormous in 1999 multiple segments, multiple design teams will make 3dfx competitive in 1999 interest income ~$1M, rest is sega settlement after legal expenses making connections with retailers to track sell-thru boardmakers have their own agenda, can't be relied on 2Q purchases were suspicious, said no to some, should have said no to more some customers are less able or willing to talk about inventory, but they won't be dependent on that. weekly or biweekly info from retailers already set up Q: nvidia's roadmap helping OEM sales? - A: doesn't look like tnt OEMs all that extensive, they have yield problems, performance shortfalls that detract from nvidia's roadmap we'll see the power of their roadmap over the next few months several hundred thousand Banshee into the channel, disappearing off the retail sales 2M units of V2 shipped not talking to console makers. missed the console boat while they were dealing with SEGA set-top boxes, webtv types will compete well with consoles in next gen will be on show floor at COMDEX, hope to have OEM announcements in time for COMDEX 1/3 Banshee classic OEM, 1/3 system integrator, 1/3 retail V2 80% retail, substantial OEM for 1st time in 4Q 2D is free now, Glide allows 3dfx to have exclusive content (Unreal and Diablo 2), differentiates 3dfx Performance delta is still there, tho decreased. When new products come out Glide will become important again (like glide support for multitexturing and V2). Allows innovation of new features with new architectures. 27% income tax rate for remainder 1998. 30-32% in 1999. Simon